PAMELA Ruben-Knudsen and Marnine Casillas were employed as Client Service Managers by Arthur J. Gallagher and Co., a brokerage firm. Client service managers are salaried and considered exempt from overtime. However, their primary task is to coordinate between producers, clients and insurers to process insurance applications and renewals.
Pamela and Marnine do not manage or supervise other employees. They have no authority to exercise their discretion or independent judgment. They regularly perform clerical tasks according to specific instructions.
The employer also had a uniform policy requiring Client service managers to regularly work more than eight hours per day or more than forty hours per week to complete their assigned tasks, which normally could not be completed in a forty-hour work week.
Pamela and Marnine sued Arthur J. Gallagher and Co. in a class action alleging misclassification in violation of California law. The employees also alleged that the employer failed to provide them off-duty meal breaks or accurate wage statements showing the total hours worked and the gross wages earned.
Under California law, employees are entitled to overtime pay for any work in excess of eight hours in one workday, or 40 hours in any one workweek, unless the employee qualifies for a legal exemption. This means if the employee is properly exempt, they are not entitled to overtime pay or meal periods. To be correctly exempt, the employee must fall under one of these exemptions:
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